Top 150+ Solved Regulatory Framework for Companies MCQ Questions Answer
Q. When an act is performed or a transaction is carried out, which thoughlegal in itself, is not authorized by the objects clause in the Memorandum or by Statute, it is said to be.
a. ultra vires the powers of the company.
b. intra vires the powers of the company.
c. ultra vires the powers of the company.
d. ultra vires the implied authority.
Q. An act of a director which is intra vires the Memorandum and ultra viresthe Articles of Association.
a. cannot be ratified by the company.
b. must necessarily be ratified by the company.
c. may be ratified by the company.
d. is void ab inito.
Q. Doctrine of constructive notice is related to.
a. memorandum of association.
b. articles of association.
c. memorandum of association and articles of association both.
d. neither memorandum of association nor articles of association.
Q. A person is disqualified from being appointed as a director of a company if.
a. he has applied to be adjudged insolvent.
b. he is of unsound mind.
c. he is an undischarged insolvent.
d. all the above.
Q. A person cannot be a director of more than …………… as per theCompanies (Amendment) Act, 2000.
a. 5 companies.
b. 10 companies.
c. 15 companies.
d. 20 companies.
Q. The remuneration payable to a whole time director of the company shouldnot exceed.
a. 5% of the net profits.
b. 6 % of the net profits.
c. 7 % of the net profits.
d. 10% of the net profits.
Q. The first directors of a public company are appointed by the.
a. public.
b. shareholders.
c. promoters.
d. government.
Q. According to the companies Act, 1956 a Private limited company musthave at least ………… directors.
a. seven.
b. three.
c. two.
d. one.
Q. Maximum managerial remuneration permissible under the Companies Act,1956 for public limited companies is.
a. 10% of the net profits.
b. 5% of net profit.
c. 11% of net profit.
d. 8% of net profit.
Q. Under the companies Act, which one of the following powers can beexercised by the Board of Directors?
a. power to sell the company’s undertakings.
b. power to make call.
c. power to borrow money in excess of the paid up capital.
d. power to reappoint an auditor.
Q. Who may be appointed as a director of a company?
a. an individual.
b. a body corporate.
c. a firm.
d. an association.
Q. The nominal value of the qualification shares of a director must not exceed.
a. rs. 1000
b. rs.2000.
c. rs.4000.
d. rs. 5000 or the nominal value of one share where it exceeds rs.5000.
Q. According to section 255 of the companies Act, the Directors must beappointed by the.
a. central government.
b. company law tribunal.
c. company in general meeting.
d. board of directors.
Q. The Board of Directors can exercise the power to appoint directors in the case of.
a. additional directors.
b. filling up the casual vacancy.
c. alternate directors.
d. all the above.
Q. Where a director acts dishonestly to the interest of the company, he will beheld liable for.
a. ultra vires acts.
b. negligence.
c. breach of fiduciary duty.
d. mala fide acts.